Retiring in Finland: a complete guide
Discover everything you need to know about retiring in Finland, including the pros and cons, the process of emigrating to Finland, and the costs involved.
Summary
Finland is a popular retirement destination due to its robust healthcare and transportation systems, progressive tax system, and picturesque landscapes.
The average cost of living in Finland, including rent, is 19% lower than in the US.
You will need a Permanent (Extended) Residence Permit to retire in Finland.
Unbiased can connect you with a financial advisor who can provide expert advice on planning for retirement.
What are the pros and cons of retiring in Finland?
If you want to retire in Finland, there are numerous factors to consider.
Like everywhere, it has its advantages, but it has its downsides, too.
Pros of retiring to Finland:
Wide range of living environments: There are multiple options, from diverse and vibrant cities to quiet countryside towns.
Progressive tax system: Agreements with many countries (including the US) to prevent double taxation.
Housing benefits: Some retirees may qualify for housing benefits through Kela (the Social Insurance Institution of Finland).
Functional public transportation system: Easy access to trains, trams, and buses.
Comprehensive healthcare services: All healthcare is available to those who retire to Finland.
Cons of retiring to Finland:
Cold climate: Temperatures drop below freezing between November and March.
High taxes: Finnish residents are taxed on their worldwide incomes, and as of 2024, those earning over €150,000 per annum can pay up to 44% on excesses.
Emigration barriers: Certain criteria must be met to gain permanent residency, including fluency in Finnish.
What are the best places to retire in Finland?
There are many locations you can consider when looking to emigrate to Finland.
As a US expat, these are some of the best places to retire in Finland:
Espoo: Located west of the capital, Helsinki, this city boasts world-class infrastructure and ample access to green and blue spaces.
Vantaa: A multicultural environment with a mix of modern amenities and pristine natural spaces. It provides access to several large parks, lakes, hiking trails, recreational areas, and many annual events and cultural festivals.
Jyväskylä: Retiring in this location gives you access to attractive urban landscapes, picturesque lakes, national parks, and a regular events calendar, including highlights like the City of Lights and the FIA World Rally Championships.
Helsinki: Finland’s seaside capital is renowned for its architecture, cultural events, scenic cafes, and striking waterfronts.
What age can you retire in Finland?
The current retirement age in Finland is 65. It will rise to 66 in February 2025 and 67 in February 2030.
Whether you will be entitled to the national pension depends on how many years you have lived in Finland between the ages of 16 and retirement age.
You must have lived in Finland for at least 40 years to qualify for the full state pension. Once you become a resident, you will also gain access to Finland’s public and private healthcare systems.
What is the average cost of retirement in Finland?
The cost of living with rent included in Finland is 19% lower, on average than in the US.
Basic utilities for a 915-square-foot apartment will cost around €126.06 per month, and an unlimited internet plan at speeds of 60mbps or more will cost around €21.11 per month.
A monthly public transport pass costs about €60.00, and the estimated cost of living expenses for a single person in Finland, without rent, is roughly €943.30.
Do you pay taxes after retirement in Finland?
If you emigrate to Finland and have been there for more than six months or have permanent residency, you will pay progressive income tax based on your total worldwide income and your municipality of residence.
If you are a non-resident, you will only be taxed on your Finnish income at a 35% flat rate. If you are eligible for Social Security payments, you can receive them while living in Finland.
What programs are there for emigrating to Finland?
If you want to retire in Finland, you will need to apply in person at a Finnish embassy in your country or a Schengen country that represents Finland for a Temporary Residence Permit or a Permanent (Extended) Residence Permit.
You can apply for Permanent Residence after living in Finland with a permanent residence permit for four years or longer.
What visas do I need to retire in Finland?
No specific visas are required for US citizens wishing to retire in Finland. However, if you want to stay long term, you will need a permanent residence permit.
What are my healthcare options in Finland?
Finland offers free public medical care for citizens and residents.
After working or living in Finland for four months, you can register for healthcare access and your Kela card through the National Health Insurance.
Private healthcare and private health insurance are also available at your own expense.
Is it safe to retire in Finland?
The Finnish Capital of Helsinki is currently ranked as the 9th safest city in the world. It has a low risk of natural disasters, transportation dangers, muggings, scams, and terrorism.
What is the housing market in Finland?
In 2024, the average cost of rent for a one-bedroom apartment in a Finnish city center is €793.66. Renting outside of a city center is more affordable, at around €648.59 a month.
If you wish to rent a three-bedroom apartment in or outside a city center, it could cost you around €1360.86 or €1036.56 per month, respectively.
These are the average house listing prices for different areas in Finland as of September 2024:
| Area of Finland | Average House Price |
|---|---|
| Espoo | €4,948/m2 |
| Helsinki | €7,440/m2 |
| Vantaa | €3,345/m2 |
| Jyväskylä | €2,927/m2 |
What happens to my retirement benefits if I retire in Finland?
You can still receive Social Security payments while living in Finland.
You will also be able to access your own retirement savings accounts, such as our 401(k) or IRA.
Is Finland a good place to retire?
Finland is a popular choice for US citizens looking to retire overseas.
Although the cold climate is not for everyone, there are many benefits to retiring in Finland, including a high degree of safety, a progressive tax system and an existing tax agreement with the US, robust housing and healthcare benefits for retirees, and plenty of natural beauty to admire.
The country also boasts a reputable public transportation system and excellent healthcare facilities, making it a great option if you’re looking to retire abroad.
Let Unbiased connect you with an expert financial advisor who can provide the advice you need to retire comfortably.
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